Since the beginning of 2018, 670 companies have gone bankrupt

Since the beginning of 2018, 670 companies have gone bankrupt

Since the beginning of 2018, 670 companies have been declared bankrupt, i.e. by 13% more than in the corresponding period in 2017. According to experts, over 80% of insolvencies should not come as a surprise. This is due to the fact that many companies do not show organizational and financial effectiveness. They remain on the market without reacting to changes, or they are late with them. Additionally, legal and tax changes do not help them in corrective actions.

The biggest problem with profitability are companies in the infrastructural construction segment, which execute contracts financed from public funds. This is evidenced by the number of insolvencies of companies carrying out construction works, in particular in the field of roads and motorways, transmission pipelines, water and sewage systems and other civil engineering structures.

In August, 70 per cent of the insolvencies concerned specialised companies in infrastructure works in the construction sector. Only in construction related to the contribution of buildings has there been an improvement in the number of insolvencies.

In order to reduce the number of bankruptcies in the construction sector, the Ministry of Justice submitted the draft Act on the prevention of abuses in road investments for further government works (www.filipiakbabicz.com/przestepstwa-w-biznesie/2018/07/30/nowe-regulacje-w-zakresie-ochrony-podwykonawcow-robot-budowlanych/).

Source: next.gazeta.pl/next/7,151003,23960424,liczba-niewypłacnosci-w-gore-klopot-z-state contracts.html#a=88&c=145&s= BoxBizImg1.

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